Timing of appraisals/inspections

[David K.]

Hi,

Long time lurker on BiggerPockets and first time poster.  I've been interested in getting into multi-family rental investments for some time and have been reading and getting educated on the analytics. After finally finding a multi-family property I think I am interested in, I now realize I don't actually know the "on the ground" process for when/how some of these steps are implemented.  Specifically:

(1) When in the process do I get an appraisal done?  It is my understanding that my lender will likely have an appraisal done, but should I get one of my own before making an initial offer?  While I have done my due diligence on what I think are reasonable comps, I don't making a minor expense of a professional appraisal to validate (or cause me to re-think) what I my initial offer should be.  It would seem odd to have an appraisal conducted after making an initial offer.

(2) Relatedly, when should I have the property/home inspection performed?  From what I have read--and unless I've misunderstood--it seems like this is often done after the offer is made and part of the due diligence before closing.  (For example, Steps 7 and 8 on https://www.biggerpockets.com/renewsblog/2014/07/1... ) But like the appraisal, wouldn't a significant repair impact how much I want to make in my initial offer?  For example, on the property I'm looking at, I suspect some serious work may be needed on its septic system.  (The listing notes that the buyer is responsible for any septic repairs and, given my knowledge of the area and some recent law changes, I suspect it may need an updated system.)  It would seem like I would want the inspection done before making the offer, but that seems contrary to many posts I have seen.

Finally, I have read some conflicting advice on when to request Schedule Es/rent rolls/etc. from the seller. (The listing reports a fantastic NOI that is still believable, but is just a little short of potentially too good to be true.) Some posts seem to indicate that this is part of the verification process, but like the above, these seems like up steps that may impact my offer.

These are obvious newbie questions, but I'm trying not to look too terribly ignorant in my negotiations, so any and all advice is appreciated!  Thank you!